Indonesia to issue domestic mineral processing rule this year

Indonesia expects to issue this year a new decree which will ban miners from exporting raw materials and require them to process ore into semi-finished products at local smelters before exporting them, a senior mining official said on late Wednesday.

"We have internal discussion about the rule at the energy and mineral resources," said Thamrin Sihite, Director General of Mineral Resources and Coal at the ministry.

Under 2009 Mining and Coal Law, miners are required to process mineral ore and coal domestically into advanced products that can fetch higher prices when they are exported by 2014.

But the energy ministry has not yet issued any regulation regarding domestic processing of mining products.

"We don't want to exports just the soil. Mining products need to be polished too," said Thamrin, adding there are 3-4 companies that have request permit to build smelters.

"The investors are both foreign and domestic investors, including PT International Nickel Indonesia Tbk (Inco)," he added.

The new regulation will require development of local smelters to boost processing of mining products. (giok)